Good Morning from Allendale, Inc. with the early morning commentary for May 26, 2020.
Grain Markets were slightly higher overnight on bargain-buying, short covering, and a decrease in the U.S. dollar, but U.S.-China Trade tensions capped gains over the weekend. Trade will continue to focus on Chinese ag purchases and planting weather throughout this week.
Last week, July corn futures were down 1.75 cents, July soybeans were down 5.25 cents, July wheat up 8.50 cents, July soymeal was down $3.40 and July soyoil was up 9 points.
USDA Weekly Crop Progress Report will be released this afternoon at 3 p.m. CST. Trade is expecting corn planting around 90% complete (80% last week, 55% last year, 82% average). Soybean planting is expected at 70% complete (53% last week, 16% last year, 56% average). Hard red Spring wheat planting is expected at 70% complete (60% last week, 84% last year, 92% average).
CFTC Commitments of Traders showed funds new net position short -245,386 corn contracts, long +12,064 soybean contracts, short -16,476 wheat contracts, short -29,404 soymeal contracts and long +2,681 soyoil contracts.
China's soybean imports in April from Brazil rose 2.6% from a year earlier, customs data showed, as cargoes delayed by bad weather began to arrive at ports. China brought in 5.939 million tonnes of soybeans from Brazil in April (5.786 million tonnes last year), according to General Administration of Customs data. April's imports from Brazil were nearly triple March arrivals (2.099 million tonnes).
Ukrainian export prices for 2020 wheat harvest have climbed, due to growing fears over the crop's condition in the Black Sea region and Europe, the APK-Inform consultancy said. This year, analysts have forecast a fall to 24-25 million tonnes due to poor weather (28.3 million tonnes last year).
Egypt has procured 3 million tonnes of local wheat during the harvest season, the supply ministry said. The ministry said earlier it aims to procure 3.6 million tonnes this season, and President Abdel-Fatah al-Sisi has urged farmers to sell as much as possible to the government.
USDA Monthly Cattle on Feed report showed feedlot placements at -22.3% under last year (-22.6% estimated, -22.7% last month and -7.6% year/year in February) at 1.432 million head. With packers still down last month, marketings came in at -24.3% under last year (-24.9% estimated, +13.1% last month) at 1.459 million head and May 1 Cattle on Feed was at -5.1% under last year (-4.9% estimated, -5.5% last month) at 11.200 million head.
Coronavirus cases at a Dutch pork processing plant near the German border has jumped to 147 since it was closed last week and workers asked to go into quarantine. The Vion plant in Groenlo employs a total of 657 people. Health authorities ordered it shut and the workers quarantined after 45 infections were detected on May 20.
Dressed beef values were lower with choice down 5.07 and select down 8.35. The Feeder cattle index is 126.24. Pork cut-out values were down 1.10.